Question

How does foreign trade connect the markets of different countries? Explain with example.

Answer 1

Answer:

Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. ... With the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal.

Answer 2

Answer:=> Foreign trade is the main channel which connects the markets of various countries. Foreign trade lead to integration of markets across the countries as follows:

1】Creates opportunities for the producers to reach beyond the domestic markets or the markets of their own countries.

2】Import of goods from various countries provides choice of goods for consumers beyond the goods thet ere produced domesticeMy.

3】Producers of different countries compete with each other although they are thousands of miles away.

Explanation: